UK inflation rose in March, with CPI rising from 3.0% yoy to 3.3% yoy, in line with expectations. On a monthly basis, prices increased 0.7% mom, slightly above forecasts of 0.6% mom, reflecting renewed upward pressure largely driven by energy-related components.
The composition of inflation shows a mixed picture. Core CPI eased slightly from 3.2% yoy to 3.1% yoy, suggesting that underlying price pressures are not accelerating yet. However, goods inflation picked up from 1.6% to 2.1%, while services inflation rose from 4.3% to 4.5%, indicating that domestic price pressures remain firm.
Energy played a central role in the latest increase. Motor fuels made the largest upward contribution to CPI, while clothing provided a partial offset. This highlights the growing impact of higher fuel costs on headline inflation, even as some consumer categories soften.
Upstream price pressures are building more clearly. PPI input prices surged 4.4% mom and 5.4% yoy, with crude oil prices rising over 58% yoy. Metals and other raw materials also contributed, reinforcing the risk that cost pressures could feed further into consumer prices in coming months.
| Data | M/M | Y/Y |
|---|---|---|
| CPI | +0.7% | 3.3% |
| Core CPI | 3.1% | |
| CPI Goods | 2.1% | |
| CPI Services | 4.5% | |
| PPI Input | 4.4% | 5.4% |
| PPI Output | 0.9% | 2.6% |
| Import Price Index | 4.2% | |
| Crude Oil Input Prices | 58.3% | |
| Metals & Materials Input | 3.5% |
